The ability to adapt to changes in the international economic environment is of great importance to the Faroe Islands and the Faroese economy. Trade and industry legislation is implemented to encourage local businesses to face international competition and to attract foreign investment.
Governmental bodies such as the Faroese Competition Authority, the Postal and Telecom Surveillance Authority, and the Insurance Authority are established with the goal of securing a healthy business environment in the Faroe Islands. The Competition Act for example has provisions against anti-competitive behaviour, abuse of market dominance, and merger control. Download the Faroese Competition Act in English.
With regards to foreign trade, a large majority of the registered export of goods derives from fishery. Trade with EU countries accounts for around two-thirds of the export and import activities of the Faroe Islands. Other important markets include Norway, Nigeria, China, Russia, and Iceland. Having the status of an independent customs area, import duties and rules are set by the Faroese government and negotiated by relevant parties in regional, bilateral, and multilateral trade agreements.
For further information about the Faroese economy, see the publications Faroe Islands Information Memorandum 2012 and Economic Outlook 2012-2013 produced by the Governmental Bank.
Also we encourage you to read more about the Faroes and the EU.